U.S. Dollar Setting Stage for Bitcoin to Soar
The U.S. Dollar and Bitcoin have been moving in inverse directions. Throughout 2022 as Bitcoin shed value, the U.S. Dollar index grew stronger. Interestingly, the DXY ’s 2023 high nearly coincided with Bitcoin’s 2023 low. According to the thumb rule, Bitcoin tends to benefit from a weak greenback. Usually, DXY ’s downtrend helps strengthen Bitcoin’s value, and vice versa. Can U.S. Dollar Help Bitcoin Rise Like a Phoenix ? Over the past few months, a few interesting trends have been observed on the DXY and BTC charts. Primarily, both assets have been trading within a horizontal channel. While Bitcoin stepped into it by mid of last year itself, the Dollar Index caught up a few weeks later. In Q1, whenever DXY was seen trading around the ceiling of the setup, Bitcoin had been hovering around lows [1]. Contrarily, whenever BTC traded around the roof in the April-May period, the DXY ended up creating lows [2]. Now, the Dollar is trading below the setup as observed in the cha...